Freedom Cannabis forms strategic alliance with U.S.-based Artizen
May 13, 2022 By Grow Opportunity staff
Edmonton, Alta.-based Freedom Cannabis Inc. has formed a strategic relationship with American development firm Pervasip Corp, and its wholly owned Seattle-based Zen Asset Management, owners of the Artizen brand, to pursue what they’re calling “mutually beneficial business opportunities.”
In a May 13 news release, Freedom officials said the strategic relationship will see the two companies collaborate on co-branding and sharing intellectual property. The two companies entered into the relationship after signing a non-binding Letter of Intent (LOI) that forms the basis of the agreement.
“For Freedom Cannabis, this is a very important step forward,” said CEO Johnfrank Potestio. “This provides our company with a very important foothold in the US market that can be developed even further as our two companies begin to collaborate.”
The strategic relationship is beneficial to both companies as they build brand awareness in their respective markets, Freedom officials said. The cannabis companies are licensed producers and managers of premier brands and are “quickly gaining market share” in both Canada and the U.S., they added.
The LOI also contemplates a potential joint venture between the two companies for Artizen’s branded product to be grown at the Freedom facility located just outside of Edmonton. This would include licensing of the Artizen brand in Canada and Freedom licensing its brand to Artizen in the U.S.
The two companies will also explore a potential merger in the future, depending on market conditions and regulatory approvals, that would significantly increase market share in North America. A potential merger would be dependent on due diligence by both parties, Freedom Cannabis pursuing a public offering in Canada, and legalization of cannabis at the federal level in the U.S.
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